start a counseling psychology company in kenya

Legal Requirements for Starting a Counselling Company in Kenya

Starting a counselling or mediation company in Kenya can be a fulfilling endeavor, providing essential services to individuals and communities in need. 

However, to ensure the practice is legally compliant and professionally recognized, it is crucial to adhere to several legal requirements and standards. This article outlines the steps and considerations needed to establish and run a counselling company/practice in Kenya.

Business/Company Registration

The first step is to register your business with the Registrar of Companies. Depending on your preference and business model, you can register as a sole proprietorship, partnership, or limited company. This formal registration provides legal recognition to your practice.

Company registration involves business name registration, which ensures that your business name is legally protected and uniquely identifiable.

Consulting with a company registration service like the one offered by GVL can help you weigh your options and decide which legal vehicle to use for your practice. 

Get in touch with GVL today to get customized legal and tax advice as you start your business. In addition to professional advice, we make the application for company registration on your behalf, ensuring you do everything right. 

Licensing and Professional Certification

To practise counselling in Kenya, you must obtain a license from the Counsellors and Psychologists Board and renew it annually. The license is granted upon meeting certain qualifications

Additionally, it is important to join the Kenya Counselling and Psychological Association (KCPA). Membership gives you professional credibility and enhances client trust. It also facilitates continuous professional development, ensuring you always give your client the best services. 

KCPA membership requirements typically include:

  • Proof of relevant qualifications, such as a degree or diploma in counselling or psychology.
  • Adherence to a code of ethics governing professional conduct.
  • Commitment to continuous professional development to maintain and enhance skills.

This process may involve submitting academic and professional certificates, passing a proficiency test or assessment, and providing references or proof of practical experience.

Regulatory Compliance

All practising psychologists and counsellors in Kenya must adhere to the Kenya Counsellors and Psychologists Act, 2014, which governs the practice of counselling and psychology in Kenya. 

Key requirements include:

  •  Registration with the Counsellors and Psychologists Board (CPB).
  •  Adherence to ethical guidelines and standards of practice.
  •  Participation in mandatory continuing education to maintain licensure.

Professional Misconduct 

Your license can be revoked if you commit the following acts of misconduct: 

  • Failing to follow the standards of counselling and psychology laid down by the CPB. 
  • Committing gross negligence in professional duties. 
  • Allowing another person to practise in your name when they are not duly qualified and licensed 
  • Taking advantage of clients by abusing a position of trust, authority, and expertise 
  • Being insensitive to clients with a lack of regard for their needs, feelings, and rights
  • Incompetence due to inadequate training and experience, personal unfitness, character defects, or emotional disturbance
  • Irresponsibility that is evidenced by unreliable execution of professional duties, blaming others for one’s mistakes, and excessive delays in delivering services
  • Abandonment of clients through failure to follow through with duties 

Data Protection and Confidentiality

Adherence to the Data Protection Act, 2019 is crucial to safeguard client information. Key aspects include:

  • Obtaining consent before collecting personal data
  • Ensuring secure storage and handling of data
  • Providing clients with access to their personal information upon request

Tax Compliance

After registering a company for a counselling practice, you will be liable to the following tax obligations: 

  • Income tax at 30% of profit, which is declared annually 
  • PAYE tax if you have employees 

According to the VAT Tax Act of 2013, medical, veterinary, dental, and nursing services are exempt from tax. Ordinarily, after crossing the annual revenue threshold of 5 million, businesses are subject to VAT tax. Since medical services are exempt, a counselling practice is not subject to VAT even with annual revenues surpassing 5 million.

You will have the following obligations: 

  • Filing annual tax returns
  • Remitting tax on time 
  • Backing up all company expenses with eTIMS receipts 
  • Issuing clients with eTIMS receipts when needed 

Contact GVL for customized accounting consultation at the business startup stage. Additionally, we offer professional bookkeeping and tax filing services 

Local Government Requirements

Obtain a business permit from the local county government where the practice will operate. This involves:

  – Paying the necessary fees.

  – Complying with zoning and land-use regulations.

  – Adhering to any other specific county regulations.

Employment Regulations

When hiring staff, compliance with the Employment Act, 2007 is essential. This includes:

  • Providing contracts outlining terms and conditions of employment.
  • Ensuring fair labor practices.
  • Remitting statutory deductions such as the National Social Security Fund (NSSF) and the National Hospital Insurance Fund (NHIF).

Insurance

Obtain professional indemnity insurance to protect against claims of malpractice or negligence. This coverage can help safeguard your practice from potential legal liabilities.

Additionally, consider general liability insurance to cover accidents or injuries that may occur on your premises. This additional layer of protection ensures comprehensive risk management.

Other Considerations

Develop clear client agreements and consent forms outlining the terms of service, confidentiality policies, and fees. Additionally, maintain accurate and secure records of all client interactions and sessions.

Conclusion

Setting up a counselling practice in Kenya requires careful adherence to various legal, regulatory, and professional standards. 

By following these guidelines and ensuring compliance with all relevant laws, you can establish a reputable and legally compliant practice. This not only protects your clients but also enhances the credibility and success of your practice.

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